FINERACT-1981: Progressive Loan schedule handling - Installment charges

2025-07-08 23:22:50 +02:00
parent f76a65ed99
commit d165a3feda
22 changed files with 2484 additions and 89 deletions
@@ -28,12 +28,15 @@ public enum ChargeProductType {
    LOAN_NSF_FEE(6L), //
    LOAN_DISBURSEMENT_PERCENTAGE_FEE(7L), //
    LOAN_TRANCHE_DISBURSEMENT_PERCENTAGE_FEE(8L), //
-    LOAN_INSTALLMENT_PERCENTAGE_FEE(9L), //
+    LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST(9L), //
    LOAN_PERCENTAGE_LATE_FEE_AMOUNT_PLUS_INTEREST(10L), //
    CLIENT_TEST_CHARGE_FEE(11L), //
    LOAN_DISBURSEMENT_CHARGE(12L), //
    CHARGE_LOAN_TRANCHE_DISBURSEMENT_CHARGE_AMOUNT(13L), //
-    CHARGE_LOAN_TRANCHE_DISBURSEMENT_CHARGE_PERCENT(14L); //
+    CHARGE_LOAN_TRANCHE_DISBURSEMENT_CHARGE_PERCENT(14L), //
+    LOAN_INSTALLMENT_FEE_FLAT(15L), //
+    LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT(16L), //
+    LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST(17L); //

    public final Long value;

@@ -138,6 +138,12 @@ public enum DefaultLoanProduct implements LoanProduct {
    LP2_ADV_PYMNT_INTEREST_DAILY_RECALC_EMI_360_30_APPROVED_OVER_APPLIED_FLAT_CAPITALIZED_INCOME, //
    LP2_ADV_PYMNT_INTEREST_DAILY_RECALC_EMI_360_30_MULTIDISB_CAPITALIZED_INCOME_ADJ_CUSTOM_ALLOC, //
    LP2_ADV_PYMNT_360_30_INTEREST_RECALC_AUTO_DOWNPAYMENT_ZERO_INTEREST_CHARGE_OFF_ACCRUAL_ACTIVITY, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_DAILY_INSTALLMENT_FEE_FLAT_CHARGES, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_CHARGES, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_INTEREST_CHARGES, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_INTEREST_CHARGES, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_ALL_CHARGES, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_FLAT_INTEREST_CHARGES_TRANCHE, //
    ;

    @Override
@@ -60,6 +60,8 @@ public class LoanRequestFactory {
    public static final String DATE_FORMAT = "dd MMMM yyyy";
    public static final String DEFAULT_LOCALE = "en";
    public static final DefaultLoanProduct DEFAULT_LOAN_PRODUCT = DefaultLoanProduct.valueOf("LP1");
+    public static final DefaultLoanProduct DEFAULT_PROGRESSIVE_LOAN_PRODUCT = DefaultLoanProduct
+            .valueOf("LP2_ADV_CUSTOM_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL");
    public static final Double DEFAULT_PAYMENT_TRANSACTION_AMOUNT = 200.00;
    public static final Double DEFAULT_UNDO_TRANSACTION_AMOUNT = 0.0;
    public static final Double DEFAULT_REPAYMENT_TRANSACTION_AMOUNT = 200.00;
@@ -78,13 +80,16 @@ public class LoanRequestFactory {
    public static final String DEFAULT_REAGING_FREQUENCY_TYPE = "MONTHS";
    public static final BigDecimal DEFAULT_INTEREST_RATE_PER_PERIOD = new BigDecimal(0);
    public static final Integer DEFAULT_INTEREST_TYPE = InterestType.FLAT.value;
+    public static final Integer DEFAULT_PROGRESSIVE_INTEREST_TYPE = InterestType.DECLINING_BALANCE.value;
    public static final Integer DEFAULT_INTEREST_CALCULATION_PERIOD_TYPE_SAME_AS_REPAYMENT_PERIOD = InterestCalculationPeriodTime.SAME_AS_REPAYMENT_PERIOD.value;
+    public static final Integer DEFAULT_PROGRESSIVE_INTEREST_CALCULATION_PERIOD_TYPE_SAME_AS_REPAYMENT_PERIOD = InterestCalculationPeriodTime.DAILY.value;
    public static final Integer DEFAULT_AMORTIZATION_TYPE = 1;
    public static final String DEFAULT_LOAN_TYPE = "individual";
    public static final Integer DEFAULT_NUMBER_OF_REPAYMENTS = 1;
    public static final Integer DEFAULT_NUMBER_OF_INSTALLMENTS = 5;
    public static final Integer DEFAULT_REPAYMENT_FREQUENCY = 30;
    public static final String DEFAULT_TRANSACTION_PROCESSING_STRATEGY_CODE = TransactionProcessingStrategyCode.PENALTIES_FEES_INTEREST_PRINCIPAL_ORDER.value;
+    public static final String DEFAULT_PROGRESSIVE_TRANSACTION_PROCESSING_STRATEGY_CODE = TransactionProcessingStrategyCode.ADVANCED_PAYMENT_ALLOCATION.value;

    public static final DateTimeFormatter FORMATTER = DateTimeFormatter.ofPattern(DATE_FORMAT);
    public static final String DATE_SUBMIT_STRING = FORMATTER.format(Utils.now().minusMonths(1L));
@@ -118,6 +123,30 @@ public class LoanRequestFactory {
                .maxOutstandingLoanBalance(new BigDecimal(10000));
    }

+    public PostLoansRequest defaultProgressiveLoansRequest(final Long clientId) {
+        return new PostLoansRequest()//
+                .clientId(clientId)//
+                .productId(loanProductResolver.resolve(DEFAULT_PROGRESSIVE_LOAN_PRODUCT))//
+                .submittedOnDate(DATE_SUBMIT_STRING)//
+                .expectedDisbursementDate(DATE_SUBMIT_STRING)//
+                .principal(DEFAULT_PRINCIPAL)//
+                .locale(DEFAULT_LOCALE)//
+                .loanTermFrequency(DEFAULT_LOAN_TERM_FREQUENCY)//
+                .loanTermFrequencyType(DEFAULT_LOAN_TERM_FREQUENCY_TYPE)//
+                .loanType(DEFAULT_LOAN_TYPE)//
+                .numberOfRepayments(DEFAULT_NUMBER_OF_REPAYMENTS)//
+                .repaymentEvery(DEFAULT_REPAYMENT_FREQUENCY)//
+                .repaymentFrequencyType(DEFAULT_REPAYMENT_FREQUENCY_TYPE)//
+                .interestRatePerPeriod(DEFAULT_INTEREST_RATE_PER_PERIOD)//
+                .interestType(DEFAULT_PROGRESSIVE_INTEREST_TYPE)//
+                .interestCalculationPeriodType(DEFAULT_PROGRESSIVE_INTEREST_CALCULATION_PERIOD_TYPE_SAME_AS_REPAYMENT_PERIOD)//
+                .amortizationType(DEFAULT_AMORTIZATION_TYPE)//
+                .transactionProcessingStrategyCode(DEFAULT_PROGRESSIVE_TRANSACTION_PROCESSING_STRATEGY_CODE)//
+                .dateFormat(DATE_FORMAT)//
+                .graceOnArrearsAgeing(3)//
+                .maxOutstandingLoanBalance(new BigDecimal(10000));
+    }
+
    public PutLoansLoanIdRequest modifySubmittedOnDateOnLoan(Long clientId, String newSubmittedOnDate) {
        DateTimeFormatter formatter = DateTimeFormatter.ofPattern(DATE_FORMAT);
        String dateDisburseStr = formatter.format(Utils.now());
@@ -972,4 +972,12 @@ public final class ErrorMessageHelper {
    public static String addInterestPauseForNotInactiveLoanFailure() {
        return "Operations on interest pauses are restricted to active loans.";
    }
+
+    public static String addInstallmentFeeInterestPercentageChargeFailure() {
+        return "Failed data validation due to: installment.loancharge.with.calculation.type.interest.not.allowed.";
+    }
+
+    public static String addInstallmentFeePrincipalPercentageChargeFailure() {
+        return "Failed data validation due to: installment.loancharge.with.calculation.type.principal.not.allowed.";
+    }
 }
@@ -52,12 +52,17 @@ public class ChargeGlobalInitializerStep implements FineractGlobalInitializerSte
    public static final String CHARGE_LOAN_NSF_FEE = "NSF fee";
    public static final String CHARGE_LOAN_DISBURSEMENT_PERCENT_FEE = "Disbursement percentage fee";
    public static final String CHARGE_LOAN_TRANCHE_DISBURSEMENT_PERCENT_FEE = "Tranche Disbursement percentage fee";
-    public static final String CHARGE_LOAN_INSTALLMENT_PERCENT_FEE = "Installment percentage fee";
+    public static final String CHARGE_LOAN_INSTALLMENT_FEE_FLAT = "Installment flat fee";
+    public static final String CHARGE_LOAN_INSTALLMENT_FEE_PERCENT_AMOUNT = "Installment percentage amount fee";
+    public static final String CHARGE_LOAN_INSTALLMENT_FEE_PERCENT_INTEREST = "Installment percentage interest fee";
+    public static final String CHARGE_LOAN_INSTALLMENT_FEE_PERCENT_AMOUNT_PLUS_INTEREST = "Installment percentage amount + interest fee";
    public static final String CHARGE_CLIENT_FIXED_FEE = "Fixed fee for Client";
    public static final String CHARGE_DISBURSEMENT_CHARGE = "Disbursement Charge";
    public static final String CHARGE_LOAN_TRANCHE_DISBURSEMENT_CHARGE_AMOUNT = "Tranche Disbursement Charge Amount";
    public static final String CHARGE_LOAN_TRANCHE_DISBURSEMENT_CHARGE_PERCENT = "Tranche Disbursement Charge Percent";
    public static final Double CHARGE_AMOUNT_FLAT = 25D;
+    public static final Double CHARGE_INSTALLMENT_FEE_AMOUNT_FLAT = 10D;
+    public static final Double CHARGE_INSTALLMENT_FEE_AMOUNT_PERCENTAGE = 1D;
    public static final Double CHARGE_AMOUNT_PERCENTAGE = 5D;
    public static final Double CHARGE_AMOUNT_DISBURSEMENT_PERCENTAGE = 1.5D;
    public static final Double CHARGE_AMOUNT_INSTALLMENT_PERCENTAGE = 1.5D;
@@ -69,6 +74,7 @@ public class ChargeGlobalInitializerStep implements FineractGlobalInitializerSte
    public static final Integer CHARGE_TIME_TYPE_INSTALLMENT = ChargeTimeType.INSTALLMENT_FEE.value;
    public static final Integer CHARGE_CALCULATION_TYPE_FLAT = ChargeCalculationType.FLAT.value;
    public static final Integer CHARGE_CALCULATION_TYPE_PERCENTAGE_AMOUNT = ChargeCalculationType.PERCENTAGE_AMOUNT.value;
+    public static final Integer CHARGE_CALCULATION_TYPE_PERCENTAGE_INTEREST = ChargeCalculationType.PERCENTAGE_INTEREST.value;
    public static final Integer CHARGE_CALCULATION_TYPE_PERCENTAGE_DISBURSEMENT_AMOUNT = ChargeCalculationType.PERCENTAGE_DISBURSEMENT_AMOUNT.value;
    public static final Integer CHARGE_CALCULATION_TYPE_PERCENTAGE_LOAN_AMOUNT_PLUS_INTEREST = ChargeCalculationType.PERCENTAGE_LOAN_AMOUNT_PLUS_INTEREST.value;

@@ -130,12 +136,14 @@ public class ChargeGlobalInitializerStep implements FineractGlobalInitializerSte
        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_TRANCHE_DISBURSEMENT_PERCENT_CREATE_RESPONSE,
                responseLoanTrancheDisbursePercent);

-        // Loan - Installment % fee
-        ChargeRequest requestLoanInstallmentPercent = defaultChargesRequest(CHARGE_APPLIES_TO_LOAN, CHARGE_LOAN_INSTALLMENT_PERCENT_FEE,
-                CHARGE_TIME_TYPE_INSTALLMENT, CHARGE_CALCULATION_TYPE_PERCENTAGE_LOAN_AMOUNT_PLUS_INTEREST,
-                CHARGE_AMOUNT_INSTALLMENT_PERCENTAGE, true, false);
-        Response<PostChargesResponse> responseLoanInstallmentPercent = chargesApi.createCharge(requestLoanInstallmentPercent).execute();
-        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_INSTALLMENT_FEE_CREATE_RESPONSE, responseLoanInstallmentPercent);
+        // Loan - Installment % fee Amount + Interest
+        final ChargeRequest requestLoanInstallmentPercentAmountPlusInterest = defaultChargesRequest(CHARGE_APPLIES_TO_LOAN,
+                CHARGE_LOAN_INSTALLMENT_FEE_PERCENT_AMOUNT_PLUS_INTEREST, CHARGE_TIME_TYPE_INSTALLMENT,
+                CHARGE_CALCULATION_TYPE_PERCENTAGE_LOAN_AMOUNT_PLUS_INTEREST, CHARGE_INSTALLMENT_FEE_AMOUNT_PERCENTAGE, true, false);
+        final Response<PostChargesResponse> responseLoanInstallmentPercentAmountPlusInterest = chargesApi
+                .createCharge(requestLoanInstallmentPercentAmountPlusInterest).execute();
+        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST_CREATE_RESPONSE,
+                responseLoanInstallmentPercentAmountPlusInterest);

        // Loan - % late (overdue) fee amount+interest
        ChargeRequest requestLoanPercentAmountPlusInterestLate = defaultChargesRequest(CHARGE_APPLIES_TO_LOAN,
@@ -175,6 +183,30 @@ public class ChargeGlobalInitializerStep implements FineractGlobalInitializerSte
                .createCharge(requestTrancheDisbursementChargePercent).execute();
        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_TRANCHE_DISBURSEMENT_CHARGE_PERCENT_CREATE_RESPONSE,
                responseTrancheDisbursementChargePercent);
+
+        // Loan - Installment flat fee
+        final ChargeRequest requestLoanInstallmentFlat = defaultChargesRequest(CHARGE_APPLIES_TO_LOAN, CHARGE_LOAN_INSTALLMENT_FEE_FLAT,
+                CHARGE_TIME_TYPE_INSTALLMENT, CHARGE_CALCULATION_TYPE_FLAT, CHARGE_INSTALLMENT_FEE_AMOUNT_FLAT, true, false);
+        final Response<PostChargesResponse> responseLoanInstallmentFlat = chargesApi.createCharge(requestLoanInstallmentFlat).execute();
+        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_INSTALLMENT_FEE_FLAT_CREATE_RESPONSE, responseLoanInstallmentFlat);
+
+        // Loan - Installment % fee Amount
+        final ChargeRequest requestLoanInstallmentPercentAmount = defaultChargesRequest(CHARGE_APPLIES_TO_LOAN,
+                CHARGE_LOAN_INSTALLMENT_FEE_PERCENT_AMOUNT, CHARGE_TIME_TYPE_INSTALLMENT, CHARGE_CALCULATION_TYPE_PERCENTAGE_AMOUNT,
+                CHARGE_INSTALLMENT_FEE_AMOUNT_PERCENTAGE, true, false);
+        final Response<PostChargesResponse> responseLoanInstallmentPercentAmount = chargesApi
+                .createCharge(requestLoanInstallmentPercentAmount).execute();
+        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_CREATE_RESPONSE,
+                responseLoanInstallmentPercentAmount);
+
+        // Loan - Installment % fee Interest
+        final ChargeRequest requestLoanInstallmentPercentInterest = defaultChargesRequest(CHARGE_APPLIES_TO_LOAN,
+                CHARGE_LOAN_INSTALLMENT_FEE_PERCENT_INTEREST, CHARGE_TIME_TYPE_INSTALLMENT, CHARGE_CALCULATION_TYPE_PERCENTAGE_INTEREST,
+                CHARGE_AMOUNT_PERCENTAGE, true, false);
+        final Response<PostChargesResponse> responseLoanInstallmentPercentInterest = chargesApi
+                .createCharge(requestLoanInstallmentPercentInterest).execute();
+        TestContext.INSTANCE.set(TestContextKey.CHARGE_FOR_LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST_CREATE_RESPONSE,
+                responseLoanInstallmentPercentInterest);
    }

    public static ChargeRequest defaultChargesRequest(Enum<ChargeProductAppliesTo> appliesTo, String name, Integer chargeTimeType,
@@ -2982,6 +2982,171 @@ public class LoanProductGlobalInitializerStep implements FineractGlobalInitializ
        TestContext.INSTANCE.set(
                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_360_30_INTEREST_RECALC_AUTO_DOWNPAYMENT_ZERO_INTEREST_CHARGE_OFF_ACCRUAL_ACTIVITY,
                responseLoanProductsRequestAdvInterestRecalculationAutoDownpaymentZeroInterestChargeOffBehaviourAccrualActivity);
+
+        // LP2 with progressive loan schedule + horizontal + interest recalculation
+        // charges - Installment Fee Flat
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_DAILY_INSTALLMENT_FEE_FLAT_CHARGES)
+        final String name116 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_DAILY_INSTALLMENT_FEE_FLAT_CHARGES.getName();
+        final List<LoanProductChargeData> chargesInstallmentFeeFlat = new ArrayList<>();
+        chargesInstallmentFeeFlat.add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_FLAT.value));
+        final PostLoanProductsRequest loanProductsRequestLP2AdvPaymentInterestRecalcDailyInstallmentFeeFlatCharges = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2InterestDailyRecalculation()//
+                .name(name116)//
+                .charges(chargesInstallmentFeeFlat)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestLP2AdvPaymentInterestRecalcDailyInstallmentFeeFlatCharges = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPaymentInterestRecalcDailyInstallmentFeeFlatCharges).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_DAILY_INSTALLMENT_FEE_FLAT_CHARGES,
+                responseLoanProductsRequestLP2AdvPaymentInterestRecalcDailyInstallmentFeeFlatCharges);
+
+        // LP2 with progressive loan schedule + horizontal
+        // charges - Installment Fee Percentage Amount
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_CHARGES)
+        final String name117 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_CHARGES.getName();
+        final List<LoanProductChargeData> chargesInstallmentFeePercentAmount = new ArrayList<>();
+        chargesInstallmentFeePercentAmount
+                .add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT.value));
+        final PostLoanProductsRequest loanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountCharges = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2()//
+                .name(name117)//
+                .charges(chargesInstallmentFeePercentAmount)//
+                .enableDownPayment(false)//
+                .enableAutoRepaymentForDownPayment(null)//
+                .disbursedAmountPercentageForDownPayment(null)//
+                .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.getValue())//
+                .loanScheduleType("PROGRESSIVE") //
+                .loanScheduleProcessingType("HORIZONTAL")//
+                .interestRateFrequencyType(3)//
+                .maxInterestRatePerPeriod(10.0)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountCharges = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountCharges).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_CHARGES,
+                responseLoanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountCharges);
+
+        // LP2 with progressive loan schedule + horizontal
+        // charges - Installment Fee Percentage Interest
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_INTEREST_CHARGES)
+        final String name118 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_INTEREST_CHARGES.getName();
+        final List<LoanProductChargeData> chargesInstallmentFeePercentInterest = new ArrayList<>();
+        chargesInstallmentFeePercentInterest
+                .add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST.value));
+        final PostLoanProductsRequest loanProductsRequestLP2AdvPaymentInstallmentFeePercentInterestCharges = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2()//
+                .name(name118)//
+                .charges(chargesInstallmentFeePercentInterest)//
+                .enableDownPayment(false)//
+                .enableAutoRepaymentForDownPayment(null)//
+                .disbursedAmountPercentageForDownPayment(null)//
+                .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.getValue())//
+                .loanScheduleType("PROGRESSIVE") //
+                .loanScheduleProcessingType("HORIZONTAL")//
+                .interestRateFrequencyType(3)//
+                .maxInterestRatePerPeriod(10.0)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestLP2AdvPaymentInstallmentFeePercentInterestCharges = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPaymentInstallmentFeePercentInterestCharges).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_INTEREST_CHARGES,
+                responseLoanProductsRequestLP2AdvPaymentInstallmentFeePercentInterestCharges);
+
+        // LP2 with progressive loan schedule + horizontal
+        // charges - Installment Fee Percentage Amount + Interest
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_INTEREST_CHARGES)
+        final String name119 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_INTEREST_CHARGES.getName();
+        final List<LoanProductChargeData> chargesInstallmentFeePercentAmountPlusInterest = new ArrayList<>();
+        chargesInstallmentFeePercentAmountPlusInterest
+                .add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST.value));
+        final PostLoanProductsRequest loanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountPlusInterestCharges = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2()//
+                .name(name119)//
+                .charges(chargesInstallmentFeePercentAmountPlusInterest)//
+                .enableDownPayment(false)//
+                .enableAutoRepaymentForDownPayment(null)//
+                .disbursedAmountPercentageForDownPayment(null)//
+                .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.getValue())//
+                .loanScheduleType("PROGRESSIVE") //
+                .loanScheduleProcessingType("HORIZONTAL")//
+                .interestRateFrequencyType(3)//
+                .maxInterestRatePerPeriod(10.0)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountPlusInterestCharges = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountPlusInterestCharges).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_INTEREST_CHARGES,
+                responseLoanProductsRequestLP2AdvPaymentInstallmentFeePercentAmountPlusInterestCharges);
+
+        // LP2 with progressive loan schedule + horizontal
+        // charges - Installment Fee All
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_ALL_CHARGES)
+        final String name120 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_ALL_CHARGES.getName();
+        final List<LoanProductChargeData> chargesInstallmentFeeAll = new ArrayList<>();
+        chargesInstallmentFeeAll.add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_FLAT.value));
+        chargesInstallmentFeeAll.add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT.value));
+        chargesInstallmentFeeAll.add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST.value));
+        chargesInstallmentFeeAll
+                .add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST.value));
+        final PostLoanProductsRequest loanProductsRequestLP2AdvPaymentInstallmentFeeAllCharges = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2()//
+                .name(name120)//
+                .charges(chargesInstallmentFeeAll)//
+                .enableDownPayment(false)//
+                .enableAutoRepaymentForDownPayment(null)//
+                .disbursedAmountPercentageForDownPayment(null)//
+                .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.getValue())//
+                .loanScheduleType("PROGRESSIVE") //
+                .loanScheduleProcessingType("HORIZONTAL")//
+                .interestRateFrequencyType(3)//
+                .maxInterestRatePerPeriod(10.0)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestLP2AdvPaymentInstallmentFeeAllCharges = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPaymentInstallmentFeeAllCharges).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_ALL_CHARGES,
+                responseLoanProductsRequestLP2AdvPaymentInstallmentFeeAllCharges);
+
+        // LP2 with progressive loan schedule + horizontal + multidisbursal
+        // charges - Installment Fee Flat + Interest %
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_FLAT_INTEREST_CHARGES_TRANCHE)
+        final String name121 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_FLAT_INTEREST_CHARGES_TRANCHE.getName();
+        final List<LoanProductChargeData> chargesInstallmentFeeFlatPlusInterest = new ArrayList<>();
+        chargesInstallmentFeeFlatPlusInterest.add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_FLAT.value));
+        chargesInstallmentFeeFlatPlusInterest
+                .add(new LoanProductChargeData().id(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST.value));
+        final PostLoanProductsRequest loanProductsRequestLP2AdvPaymentInstallmentFeeFlatPlusInterestChargesMultiDisburse = loanProductsRequestLP2AdvPaymentInstallmentFeePercentInterestCharges//
+                .name(name121)//
+                .charges(chargesInstallmentFeeFlatPlusInterest)//
+                .shortName(Utils.randomNameGenerator(SHORT_NAME_PREFIX_EMI, 3))//
+                .disallowExpectedDisbursements(true)//
+                .maxTrancheCount(10)//
+                .outstandingLoanBalance(10000.0);//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestLP2AdvPaymentInstallmentFeeFlatPlusInterestChargesMultiDisburse = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPaymentInstallmentFeeFlatPlusInterestChargesMultiDisburse).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_FLAT_INTEREST_CHARGES_TRANCHE,
+                responseLoanProductsRequestLP2AdvPaymentInstallmentFeeFlatPlusInterestChargesMultiDisburse);
    }

    public static AdvancedPaymentData createPaymentAllocation(String transactionType, String futureInstallmentAllocationRule,
@@ -90,7 +90,7 @@ public class LoanChargeStepDef extends AbstractStepDef {
        Long chargeTypeId = chargeProductType.getValue();
        if (chargeTypeId.equals(ChargeProductType.LOAN_DISBURSEMENT_PERCENTAGE_FEE.getValue())
                || chargeTypeId.equals(ChargeProductType.LOAN_TRANCHE_DISBURSEMENT_PERCENTAGE_FEE.getValue())
-                || chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_PERCENTAGE_FEE.getValue())) {
+                || chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST.getValue())) {
            throw new IllegalStateException(String.format("The requested %s charge is NOT due date type, cannot be used here", chargeType));
        }

@@ -115,7 +115,8 @@ public class LoanChargeStepDef extends AbstractStepDef {
        Long chargeTypeId = chargeProductType.getValue();
        if (!chargeTypeId.equals(ChargeProductType.LOAN_DISBURSEMENT_PERCENTAGE_FEE.getValue())
                && !chargeTypeId.equals(ChargeProductType.LOAN_TRANCHE_DISBURSEMENT_PERCENTAGE_FEE.getValue())
-                && !chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_PERCENTAGE_FEE.getValue())) {
+                && !chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT.getValue())
+                && !chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST.getValue())) {
            throw new IllegalStateException(String.format("The requested %s charge is due date type, cannot be used here", chargeType));
        }

@@ -128,6 +129,54 @@ public class LoanChargeStepDef extends AbstractStepDef {
        testContext().set(TestContextKey.ADD_DUE_DATE_CHARGE_RESPONSE, loanChargeResponse);
    }

+    @When("Admin adds {string} installment charge with {double} amount")
+    public void addInstallmentFeeCharge(final String chargeType, final double amount) throws IOException {
+        final Response<PostLoansResponse> loanResponse = testContext().get(TestContextKey.LOAN_CREATE_RESPONSE);
+        assert loanResponse.body() != null;
+        final long loanId = loanResponse.body().getLoanId();
+
+        final ChargeProductType chargeProductType = ChargeProductType.valueOf(chargeType);
+        final Long chargeTypeId = chargeProductType.getValue();
+        if (!chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_FLAT.getValue())
+                && !chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT.getValue())
+                && !chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST.getValue())
+                && !chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST.getValue())) {
+            throw new IllegalStateException(
+                    String.format("The requested %s charge is not installment fee type, cannot be used here", chargeType));
+        }
+
+        final PostLoansLoanIdChargesRequest loanIdChargesRequest = LoanChargeRequestFactory.defaultLoanChargeRequest()
+                .chargeId(chargeTypeId).amount(amount);
+
+        final Response<PostLoansLoanIdChargesResponse> loanChargeResponse = loanChargesApi
+                .executeLoanCharge(loanId, loanIdChargesRequest, "").execute();
+        ErrorHelper.checkSuccessfulApiCall(loanChargeResponse);
+        testContext().set(TestContextKey.ADD_INSTALLMENT_FEE_CHARGE_RESPONSE, loanChargeResponse);
+    }
+
+    @Then("Admin fails to add {string} installment charge with {double} amount because of wrong charge calculation type")
+    public void addInstallmentFeeChargeFails(final String chargeType, final double amount) throws IOException {
+        final Response<PostLoansResponse> loanResponse = testContext().get(TestContextKey.LOAN_CREATE_RESPONSE);
+        assert loanResponse.body() != null;
+
+        final long loanId = loanResponse.body().getLoanId();
+        final ChargeProductType chargeProductType = ChargeProductType.valueOf(chargeType);
+        final Long chargeTypeId = chargeProductType.getValue();
+
+        final PostLoansLoanIdChargesRequest loanIdChargesRequest = LoanChargeRequestFactory.defaultLoanChargeRequest()
+                .chargeId(chargeTypeId).amount(amount);
+
+        final Response<PostLoansLoanIdChargesResponse> loanChargeResponse = loanChargesApi
+                .executeLoanCharge(loanId, loanIdChargesRequest, "").execute();
+        testContext().set(TestContextKey.ADD_INSTALLMENT_FEE_CHARGE_RESPONSE, loanChargeResponse);
+        final ErrorResponse errorDetails = ErrorResponse.from(loanChargeResponse);
+        assertThat(errorDetails.getHttpStatusCode()).isEqualTo(400);
+        assertThat(errorDetails.getSingleError().getDeveloperMessage())
+                .isEqualTo(chargeProductType.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST)
+                        ? ErrorMessageHelper.addInstallmentFeeInterestPercentageChargeFailure()
+                        : ErrorMessageHelper.addInstallmentFeePrincipalPercentageChargeFailure());
+    }
+
    @Then("Admin is not able to add {string} due date charge with {string} due date and {double} EUR transaction amount because the of charged-off account")
    public void addChargeDueDateOnChargedOff(String chargeType, String transactionDate, double transactionAmount) throws IOException {
        Response<PostLoansResponse> loanResponse = testContext().get(TestContextKey.LOAN_CREATE_RESPONSE);
@@ -284,7 +333,7 @@ public class LoanChargeStepDef extends AbstractStepDef {
        Long chargeTypeId = chargeProductType.getValue();
        if (chargeTypeId.equals(ChargeProductType.LOAN_DISBURSEMENT_PERCENTAGE_FEE.getValue())
                || chargeTypeId.equals(ChargeProductType.LOAN_TRANCHE_DISBURSEMENT_PERCENTAGE_FEE.getValue())
-                || chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_PERCENTAGE_FEE.getValue())) {
+                || chargeTypeId.equals(ChargeProductType.LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST.getValue())) {
            throw new IllegalStateException(String.format("The requested %s charge is NOT due date type, cannot be used here", chargeType));
        }

@@ -82,6 +82,7 @@ import org.apache.fineract.client.models.GetLoansLoanIdTransactions;
 import org.apache.fineract.client.models.GetLoansLoanIdTransactionsResponse;
 import org.apache.fineract.client.models.GetLoansLoanIdTransactionsTransactionIdResponse;
 import org.apache.fineract.client.models.IsCatchUpRunningDTO;
+import org.apache.fineract.client.models.LoanProductChargeData;
 import org.apache.fineract.client.models.OldestCOBProcessedLoanDTO;
 import org.apache.fineract.client.models.PaymentAllocationOrder;
 import org.apache.fineract.client.models.PostAddAndDeleteDisbursementDetailRequest;
@@ -258,6 +259,20 @@ public class LoanStepDef extends AbstractStepDef {
        eventCheckHelper.createLoanEventCheck(response);
    }

+    @When("Admin creates a new default Progressive Loan with date: {string}")
+    public void createProgressiveLoanWithDate(final String date) throws IOException {
+        final Response<PostClientsResponse> clientResponse = testContext().get(TestContextKey.CLIENT_CREATE_RESPONSE);
+        final Long clientId = clientResponse.body().getClientId();
+        final PostLoansRequest loansRequest = loanRequestFactory.defaultProgressiveLoansRequest(clientId).submittedOnDate(date)
+                .expectedDisbursementDate(date);
+
+        final Response<PostLoansResponse> response = loansApi.calculateLoanScheduleOrSubmitLoanApplication(loansRequest, "").execute();
+        testContext().set(TestContextKey.LOAN_CREATE_RESPONSE, response);
+        ErrorHelper.checkSuccessfulApiCall(response);
+
+        eventCheckHelper.createLoanEventCheck(response);
+    }
+
    @When("Admin crates a second default loan with date: {string}")
    public void createSecondLoanWithDate(String date) throws IOException {
        Response<PostClientsResponse> clientResponse = testContext().get(TestContextKey.CLIENT_CREATE_RESPONSE);
@@ -483,6 +498,12 @@ public class LoanStepDef extends AbstractStepDef {
        createCustomizedLoan(data.get(1), false);
    }

+    @When("Admin creates a fully customized loan with loan product`s charges and following data:")
+    public void createFullyCustomizedLoanWithProductCharges(final DataTable table) throws IOException {
+        final List<List<String>> data = table.asLists();
+        createCustomizedLoanWithProductCharges(data.get(1));
+    }
+
    @When("Admin creates a fully customized loan with emi and the following data:")
    public void createFullyCustomizedLoanWithEmi(final DataTable table) throws IOException {
        final List<List<String>> data = table.asLists();
@@ -3279,6 +3300,77 @@ public class LoanStepDef extends AbstractStepDef {
        eventCheckHelper.createLoanEventCheck(response);
    }

+    private void createCustomizedLoanWithProductCharges(final List<String> loanData) throws IOException {
+        final String loanProduct = loanData.get(0);
+        final String submitDate = loanData.get(1);
+        final String principal = loanData.get(2);
+        final BigDecimal interestRate = new BigDecimal(loanData.get(3));
+        final String interestTypeStr = loanData.get(4);
+        final String interestCalculationPeriodStr = loanData.get(5);
+        final String amortizationTypeStr = loanData.get(6);
+        final Integer loanTermFrequency = Integer.valueOf(loanData.get(7));
+        final String loanTermFrequencyType = loanData.get(8);
+        final Integer repaymentFrequency = Integer.valueOf(loanData.get(9));
+        final String repaymentFrequencyTypeStr = loanData.get(10);
+        final Integer numberOfRepayments = Integer.valueOf(loanData.get(11));
+        final Integer graceOnPrincipalPayment = Integer.valueOf(loanData.get(12));
+        final Integer graceOnInterestPayment = Integer.valueOf(loanData.get(13));
+        final Integer graceOnInterestCharged = Integer.valueOf(loanData.get(14));
+        final String transactionProcessingStrategyCode = loanData.get(15);
+
+        final Response<PostClientsResponse> clientResponse = testContext().get(TestContextKey.CLIENT_CREATE_RESPONSE);
+        final Long clientId = clientResponse.body().getClientId();
+
+        final DefaultLoanProduct product = DefaultLoanProduct.valueOf(loanProduct);
+        final Long loanProductId = loanProductResolver.resolve(product);
+        final Response<GetLoanProductsProductIdResponse> loanProductDetails = loanProductsApi.retrieveLoanProductDetails(loanProductId)
+                .execute();
+
+        final List<PostLoansRequestChargeData> loanCharges = new ArrayList<>();
+
+        assert loanProductDetails.body() != null;
+        if (loanProductDetails.body().getCharges() != null) {
+            for (final LoanProductChargeData chargeData : loanProductDetails.body().getCharges()) {
+                loanCharges.add(new PostLoansRequestChargeData().chargeId(chargeData.getId()).amount(chargeData.getAmount()));
+            }
+        }
+
+        final LoanTermFrequencyType termFrequencyType = LoanTermFrequencyType.valueOf(loanTermFrequencyType);
+        final Integer loanTermFrequencyTypeValue = termFrequencyType.getValue();
+
+        final RepaymentFrequencyType repaymentFrequencyType = RepaymentFrequencyType.valueOf(repaymentFrequencyTypeStr);
+        final Integer repaymentFrequencyTypeValue = repaymentFrequencyType.getValue();
+
+        final InterestType interestType = InterestType.valueOf(interestTypeStr);
+        final Integer interestTypeValue = interestType.getValue();
+
+        final InterestCalculationPeriodTime interestCalculationPeriod = InterestCalculationPeriodTime.valueOf(interestCalculationPeriodStr);
+        final Integer interestCalculationPeriodValue = interestCalculationPeriod.getValue();
+
+        final AmortizationType amortizationType = AmortizationType.valueOf(amortizationTypeStr);
+        final Integer amortizationTypeValue = amortizationType.getValue();
+
+        final TransactionProcessingStrategyCode processingStrategyCode = TransactionProcessingStrategyCode
+                .valueOf(transactionProcessingStrategyCode);
+        final String transactionProcessingStrategyCodeValue = processingStrategyCode.getValue();
+
+        final PostLoansRequest loansRequest = loanRequestFactory.defaultLoansRequest(clientId).productId(loanProductId)
+                .principal(new BigDecimal(principal)).interestRatePerPeriod(interestRate).interestType(interestTypeValue)
+                .interestCalculationPeriodType(interestCalculationPeriodValue).amortizationType(amortizationTypeValue)
+                .loanTermFrequency(loanTermFrequency).loanTermFrequencyType(loanTermFrequencyTypeValue)
+                .numberOfRepayments(numberOfRepayments).repaymentEvery(repaymentFrequency)
+                .repaymentFrequencyType(repaymentFrequencyTypeValue).submittedOnDate(submitDate).expectedDisbursementDate(submitDate)
+                .graceOnPrincipalPayment(graceOnPrincipalPayment).graceOnInterestPayment(graceOnInterestPayment)
+                .graceOnInterestPayment(graceOnInterestCharged).transactionProcessingStrategyCode(transactionProcessingStrategyCodeValue)
+                .charges(loanCharges);
+
+        final Response<PostLoansResponse> response = loansApi.calculateLoanScheduleOrSubmitLoanApplication(loansRequest, "").execute();
+        testContext().set(TestContextKey.LOAN_CREATE_RESPONSE, response);
+        ErrorHelper.checkSuccessfulApiCall(response);
+
+        eventCheckHelper.createLoanEventCheck(response);
+    }
+
    public void createFullyCustomizedLoanWithInterestRateFrequency(final List<String> loanData) throws IOException {
        final String loanProduct = loanData.get(0);
        final String submitDate = loanData.get(1);
@@ -30,6 +30,7 @@ public abstract class TestContextKey {
    public static final String LOAN_CREATE_SECOND_LOAN_RESPONSE = "loanCreateSecondLoanResponse";
    public static final String LOAN_MODIFY_RESPONSE = "loanModifyResponse";
    public static final String ADD_DUE_DATE_CHARGE_RESPONSE = "addDueDateChargeResponse";
+    public static final String ADD_INSTALLMENT_FEE_CHARGE_RESPONSE = "addInstallmentFeeChargeResponse";
    public static final String ADD_PROCESSING_FEE_RESPONSE = "addProcessingFeeResponse";
    public static final String ADD_NSF_FEE_RESPONSE = "addNsfFeeResponse";
    public static final String WAIVE_CHARGE_RESPONSE = "waiveChargeResponse";
@@ -178,7 +179,10 @@ public abstract class TestContextKey {
    public static final String CHARGE_FOR_LOAN_DISBURSEMENET_FEE_CREATE_RESPONSE = "ChargeForLoanDisbursementCreateResponse";
    public static final String CHARGE_FOR_LOAN_TRANCHE_DISBURSEMENT_PERCENT_CREATE_RESPONSE = "ChargeForLoanTrancheDisbursementPercentCreateResponse";
    public static final String CHARGE_FOR_LOAN_TRANCHE_DISBURSEMENT_CHARGE_PERCENT_CREATE_RESPONSE = "ChargeForLoanTrancheDisbursementChargePercentCreateResponse";
-    public static final String CHARGE_FOR_LOAN_INSTALLMENT_FEE_CREATE_RESPONSE = "ChargeForLoanInstallmentCreateResponse";
+    public static final String CHARGE_FOR_LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_PLUS_INTEREST_CREATE_RESPONSE = "ChargeForLoanInstallmentFeePercentageAmountPlusInterestCreateResponse";
+    public static final String CHARGE_FOR_LOAN_INSTALLMENT_FEE_PERCENTAGE_AMOUNT_CREATE_RESPONSE = "ChargeForLoanInstallmentFeePercentageAmountCreateResponse";
+    public static final String CHARGE_FOR_LOAN_INSTALLMENT_FEE_PERCENTAGE_INTEREST_CREATE_RESPONSE = "ChargeForLoanInstallmentFeePercentageInterestCreateResponse";
+    public static final String CHARGE_FOR_LOAN_INSTALLMENT_FEE_FLAT_CREATE_RESPONSE = "ChargeForLoanInstallmentFeeFlatCreateResponse";
    public static final String CHARGE_FOR_CLIENT_FIXED_FEE_CREATE_RESPONSE = "ChargeForClientFixedFeeCreateResponse";
    public static final String CHARGE_FOR_LOAN_DISBURSEMENT_CHARGE_CREATE_RESPONSE = "ChargeForLoanDisbursementChargeCreateResponse";
    public static final String LOAN_RESPONSE = "loanResponse";
@@ -235,4 +239,10 @@ public abstract class TestContextKey {
    public static final String LOAN_BUY_DOWN_FEE_ADJUSTMENT_RESPONSE = "loanBuyDownFeeAdjustmentResponse";
    public static final String MANUAL_JOURNAL_ENTRIES_REQUEST = "manualJournalEntriesRequest";
    public static final String MANUAL_JOURNAL_ENTRIES_RESPONSE = "manualJournalEntriesResponse";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_DAILY_INSTALLMENT_FEE_FLAT_CHARGES = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalculationInstallmentFeeFlatCharges";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_CHARGES = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInstallmentFeePercentageAmountCharges";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_INTEREST_CHARGES = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInstallmentFeePercentageInterestCharges";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_PERCENT_AMOUNT_INTEREST_CHARGES = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInstallmentFeeAmountPlusPercentageInterestCharges";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_ALL_CHARGES = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInstallmentFeeAllCharges";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INSTALLMENT_FEE_FLAT_INTEREST_CHARGES_TRANCHE = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInstallmentFeeFlatPlusPercentageInterestChargesMultidisbursal";
 }
@@ -1517,7 +1517,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
        return repaymetsForAdjust;
    }

-    public int fetchNumberOfInstallmensAfterExceptions() {
+    public int fetchNumberOfInstallmentsAfterExceptions() {
        if (!this.repaymentScheduleInstallments.isEmpty()) {
            List<LoanRepaymentScheduleInstallment> installments = getRepaymentScheduleInstallments();
            int numberOfInstallments = 0;
@@ -721,4 +721,8 @@ public class LoanCharge extends AbstractAuditableWithUTCDateTimeCustom<Long> {
                .chargePaymentMode(chargePaymentModeData).paid(paid).waived(waived).loanId(loan.getId()).minCap(minCap).maxCap(maxCap)
                .installmentChargeData(loanInstallmentChargeDataList).externalId(externalId).build();
    }
+
+    public boolean hasInstallmentFor(final LoanRepaymentScheduleInstallment installment) {
+        return this.getInstallmentLoanCharge(installment.getInstallmentNumber()) != null;
+    }
 }
@@ -51,6 +51,7 @@ import org.apache.fineract.portfolio.charge.exception.LoanChargeNotFoundExceptio
 import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanCharge;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeRepository;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProduct;
 import org.apache.fineract.portfolio.loanproduct.exception.LinkedAccountRequiredException;
 import org.springframework.stereotype.Component;
@@ -280,6 +281,8 @@ public final class LoanChargeApiJsonValidator {
                case PERCENT_OF_INTEREST:
                    if (loanCharge.isSpecifiedDueDate()) {
                        errorcode = "specific." + LoanApiConstants.LOAN_CHARGE_CAN_NOT_BE_ADDED_WITH_INTEREST_CALCULATION_TYPE;
+                    } else if (loanCharge.isInstalmentFee() && loanCharge.getLoan().isProgressiveSchedule()) {
+                        errorcode = "installment." + LoanApiConstants.LOAN_CHARGE_CAN_NOT_BE_ADDED_WITH_INTEREST_CALCULATION_TYPE;
                    }
                break;

@@ -438,6 +441,9 @@ public final class LoanChargeApiJsonValidator {
                case PERCENT_OF_INTEREST:
                    if (chargeTime.isSpecifiedDueDate()) {
                        errorcode = "specific." + LoanApiConstants.LOAN_CHARGE_CAN_NOT_BE_ADDED_WITH_INTEREST_CALCULATION_TYPE;
+                    } else if (chargeTime.isInstalmentFee()
+                            && loanProduct.getLoanProductRelatedDetail().getLoanScheduleType().equals(LoanScheduleType.PROGRESSIVE)) {
+                        errorcode = "installment." + LoanApiConstants.LOAN_CHARGE_CAN_NOT_BE_ADDED_WITH_INTEREST_CALCULATION_TYPE;
                    }
                break;

@@ -22,7 +22,7 @@ import java.math.BigDecimal;
 import java.time.LocalDate;
 import java.util.ArrayList;
 import java.util.Collection;
-import java.util.Collections;
+import java.util.HashMap;
 import java.util.HashSet;
 import java.util.LinkedHashMap;
 import java.util.List;
@@ -75,6 +75,14 @@ public class LoanChargeService {
        loan.updateSummaryWithTotalFeeChargesDueAtDisbursement(loan.deriveSumTotalOfChargesDueAtDisbursement());
    }

+    public void recalculateParticularChargesAfterTransactionOccurs(final Loan loan, final List<LoanCharge> loanCharges,
+            final LocalDate transactionDate) {
+        for (final LoanCharge loanCharge : loanCharges) {
+            recalculateLoanCharge(loan, loanCharge, 0, transactionDate);
+        }
+        loan.updateSummaryWithTotalFeeChargesDueAtDisbursement(loan.deriveSumTotalOfChargesDueAtDisbursement());
+    }
+
    public void recalculateLoanCharge(final Loan loan, final LoanCharge loanCharge, final int penaltyWaitPeriod) {
        BigDecimal amount = BigDecimal.ZERO;
        BigDecimal chargeAmt;
@@ -94,12 +102,38 @@ public class LoanChargeService {
        }
        if (loanCharge.isActive()) {
            clearLoanInstallmentChargesBeforeRegeneration(loanCharge);
-            update(loanCharge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmensAfterExceptions(),
+            update(loanCharge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmentsAfterExceptions(),
                    totalChargeAmt);
            loanChargeValidator.validateChargeHasValidSpecifiedDateIfApplicable(loan, loanCharge, loan.getDisbursementDate());
        }
    }

+    public void recalculateLoanCharge(final Loan loan, final LoanCharge loanCharge, final int penaltyWaitPeriod,
+            final LocalDate transactionDate) {
+        BigDecimal amount = BigDecimal.ZERO;
+        BigDecimal chargeAmt;
+        BigDecimal totalChargeAmt = BigDecimal.ZERO;
+        if (loanCharge.getChargeCalculation().isPercentageBased()) {
+            if (loanCharge.isOverdueInstallmentCharge()) {
+                amount = calculateOverdueAmountPercentageAppliedTo(loan, loanCharge, penaltyWaitPeriod);
+            } else {
+                amount = calculateAmountPercentageAppliedTo(loan, loanCharge);
+            }
+            chargeAmt = loanCharge.getPercentage();
+            if (loanCharge.isInstalmentFee()) {
+                totalChargeAmt = calculatePerInstallmentChargeAmount(loan, loanCharge);
+            }
+        } else {
+            chargeAmt = loanCharge.amountOrPercentage();
+        }
+        if (loanCharge.isActive()) {
+            clearLoanInstallmentChargesBeforeRegeneration(loanCharge);
+            update(loanCharge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmentsAfterExceptions(),
+                    totalChargeAmt, transactionDate);
+            loanChargeValidator.validateChargeHasValidSpecifiedDateIfApplicable(loan, loanCharge, loan.getDisbursementDate());
+        }
+    }
+
    public void makeChargePayment(final Loan loan, final Long chargeId, final List<Long> existingTransactionIds,
            final List<Long> existingReversedTransactionIds, final LoanTransaction paymentTransaction, final Integer installmentNumber) {
        loanChargeValidator.validateChargePaymentNotInFuture(paymentTransaction);
@@ -191,7 +225,8 @@ public class LoanChargeService {
        } else {
            chargeAmt = loanCharge.amountOrPercentage();
        }
-        update(loanCharge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmensAfterExceptions(), totalChargeAmt);
+        update(loanCharge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmentsAfterExceptions(),
+                totalChargeAmt);

        // NOTE: must add new loan charge to set of loan charges before
        // reprocessing the repayment schedule.
@@ -275,7 +310,7 @@ public class LoanChargeService {
                chargeAmt = loanCharge.amountOrPercentage();
            }
            if (charge != null) {
-                update(charge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmensAfterExceptions(),
+                update(charge, chargeAmt, loanCharge.getDueLocalDate(), amount, loan.fetchNumberOfInstallmentsAfterExceptions(),
                        totalChargeAmt);
            }
        }
@@ -325,7 +360,7 @@ public class LoanChargeService {
                case FLAT:
                    if (loanCharge.isInstalmentFee()) {
                        loanCharge.setAmount(
-                                newValue.multiply(BigDecimal.valueOf(loanCharge.getLoan().fetchNumberOfInstallmensAfterExceptions())));
+                                newValue.multiply(BigDecimal.valueOf(loanCharge.getLoan().fetchNumberOfInstallmentsAfterExceptions())));
                    } else {
                        loanCharge.setAmount(newValue);
                    }
@@ -375,7 +410,7 @@ public class LoanChargeService {
                loanCharge.setAmountPaid(null);
                if (loanCharge.isInstalmentFee()) {
                    if (numberOfRepayments == null) {
-                        numberOfRepayments = loanCharge.getLoan().fetchNumberOfInstallmensAfterExceptions();
+                        numberOfRepayments = loanCharge.getLoan().fetchNumberOfInstallmentsAfterExceptions();
                    }
                    loanCharge.setAmount(chargeAmount.multiply(BigDecimal.valueOf(numberOfRepayments)));
                } else {
@@ -574,40 +609,47 @@ public class LoanChargeService {
        return calculatePerInstallmentChargeAmount(loan, loanCharge.getChargeCalculation(), loanCharge.getPercentage());
    }

-    private void updateInstallmentCharges(final LoanCharge loanCharge) {
-        final Collection<LoanInstallmentCharge> remove = new HashSet<>();
+    public void updateInstallmentCharges(final LoanCharge loanCharge) {
        final List<LoanInstallmentCharge> newChargeInstallments = generateInstallmentLoanCharges(loanCharge.getLoan(), loanCharge);
+
        if (loanCharge.getLoanInstallmentCharge().isEmpty()) {
            loanCharge.getLoanInstallmentCharge().addAll(newChargeInstallments);
        } else {
-            int index = 0;
-            final List<LoanInstallmentCharge> oldChargeInstallments = new ArrayList<>();
-            if (loanCharge.getLoanInstallmentCharge() != null && !loanCharge.getLoanInstallmentCharge().isEmpty()) {
-                oldChargeInstallments.addAll(loanCharge.getLoanInstallmentCharge());
-            }
-            Collections.sort(oldChargeInstallments);
-            final LoanInstallmentCharge[] loanChargePerInstallmentArray = newChargeInstallments
-                    .toArray(new LoanInstallmentCharge[newChargeInstallments.size()]);
-            for (final LoanInstallmentCharge chargePerInstallment : oldChargeInstallments) {
-                if (index == loanChargePerInstallmentArray.length) {
-                    remove.add(chargePerInstallment);
-                    chargePerInstallment.getInstallment().getInstallmentCharges().remove(chargePerInstallment);
-                } else {
-                    LoanInstallmentCharge newLoanInstallmentCharge = loanChargePerInstallmentArray[index++];
-                    newLoanInstallmentCharge.getInstallment().getInstallmentCharges().remove(newLoanInstallmentCharge);
-                    chargePerInstallment.copyFrom(newLoanInstallmentCharge);
+            final Map<Integer, LoanInstallmentCharge> newChargeMap = new HashMap<>();
+            for (final LoanInstallmentCharge newCharge : newChargeInstallments) {
+                if (newCharge.getInstallment() != null && newCharge.getInstallment().getInstallmentNumber() != null) {
+                    newChargeMap.put(newCharge.getInstallment().getInstallmentNumber(), newCharge);
                }
            }
-            loanCharge.getLoanInstallmentCharge().removeAll(remove);
-            while (index < loanChargePerInstallmentArray.length) {
-                loanCharge.getLoanInstallmentCharge().add(loanChargePerInstallmentArray[index++]);
+
+            final Collection<LoanInstallmentCharge> chargesToRemoveFromLoanCharge = new HashSet<>();
+            final Collection<LoanInstallmentCharge> chargesToAddIntoLoanCharge = new HashSet<>();
+
+            for (final LoanInstallmentCharge oldCharge : loanCharge.getLoanInstallmentCharge()) {
+                final Integer oldInstallmentNumber = oldCharge.getInstallment().getInstallmentNumber();
+
+                if (newChargeMap.containsKey(oldInstallmentNumber)) {
+                    chargesToRemoveFromLoanCharge.add(oldCharge);
+                    oldCharge.getInstallment().getInstallmentCharges().remove(oldCharge);
+                    chargesToAddIntoLoanCharge.add(newChargeMap.get(oldInstallmentNumber));
+                    newChargeMap.remove(oldInstallmentNumber);
+                } else {
+                    chargesToRemoveFromLoanCharge.add(oldCharge);
+                    oldCharge.getInstallment().getInstallmentCharges().remove(oldCharge);
+                }
            }
+
+            chargesToAddIntoLoanCharge.addAll(newChargeMap.values());
+
+            loanCharge.getLoanInstallmentCharge().removeAll(chargesToRemoveFromLoanCharge);
+            loanCharge.getLoanInstallmentCharge().addAll(chargesToAddIntoLoanCharge);
        }
-        Money amount = Money.zero(loanCharge.getLoan().getCurrency());
+
+        Money totalAmount = Money.zero(loanCharge.getLoan().getCurrency());
        for (LoanInstallmentCharge charge : loanCharge.getLoanInstallmentCharge()) {
-            amount = amount.plus(charge.getAmount());
+            totalAmount = totalAmount.plus(charge.getAmount());
        }
-        loanCharge.setAmount(amount.getAmount());
+        loanCharge.setAmount(totalAmount.getAmount());
    }

    private List<LoanInstallmentCharge> generateInstallmentLoanCharges(final Loan loan, final LoanCharge loanCharge) {
@@ -615,9 +657,6 @@ public class LoanChargeService {
        if (loanCharge.isInstalmentFee()) {
            List<LoanRepaymentScheduleInstallment> installments = loan.getRepaymentScheduleInstallments();
            for (final LoanRepaymentScheduleInstallment installment : installments) {
-                if (installment.isRecalculatedInterestComponent()) {
-                    continue;
-                }
                BigDecimal amount;
                if (loanCharge.getChargeCalculation().isFlat()) {
                    amount = loanCharge.amountOrPercentage();
@@ -633,6 +672,78 @@ public class LoanChargeService {
        return loanChargePerInstallments;
    }

+    private List<LoanInstallmentCharge> generateInstallmentLoanCharges(final Loan loan, final LoanCharge loanCharge,
+            final LocalDate transactionDate) {
+        final List<LoanInstallmentCharge> loanChargePerInstallments = new ArrayList<>();
+        if (loanCharge.isInstalmentFee()) {
+            final List<LoanRepaymentScheduleInstallment> installments = loan.getRepaymentScheduleInstallments().stream()
+                    .filter(i -> i != null && i.isNotFullyPaidOff() && i.getDueDate() != null && !i.getDueDate().isBefore(transactionDate))
+                    .toList();
+            for (final LoanRepaymentScheduleInstallment installment : installments) {
+                BigDecimal amount;
+                if (loanCharge.getChargeCalculation().isFlat()) {
+                    amount = loanCharge.amountOrPercentage();
+                } else {
+                    amount = calculateInstallmentChargeAmount(loan, loanCharge.getChargeCalculation(), loanCharge.getPercentage(),
+                            installment).getAmount();
+                }
+                final LoanInstallmentCharge loanInstallmentCharge = new LoanInstallmentCharge(amount, loanCharge, installment);
+                installment.getInstallmentCharges().add(loanInstallmentCharge);
+                loanChargePerInstallments.add(loanInstallmentCharge);
+            }
+        }
+        return loanChargePerInstallments;
+    }
+
+    public void updateInstallmentCharges(final LoanCharge loanCharge, final LocalDate transactionDate) {
+        final List<LoanInstallmentCharge> newChargeInstallments = generateInstallmentLoanCharges(loanCharge.getLoan(), loanCharge,
+                transactionDate);
+
+        if (loanCharge.getLoanInstallmentCharge().isEmpty()) {
+            loanCharge.getLoanInstallmentCharge().addAll(newChargeInstallments);
+        } else {
+            final List<LoanInstallmentCharge> oldLoanInstallmentCharges = loanCharge
+                    .getLoanInstallmentCharge().stream().filter(i -> i != null && !i.isPaid() && i.getInstallment() != null
+                            && i.getInstallment().getDueDate() != null && !i.getInstallment().getDueDate().isBefore(transactionDate))
+                    .toList();
+
+            final Map<Integer, LoanInstallmentCharge> newChargeMap = new HashMap<>();
+            for (final LoanInstallmentCharge newCharge : newChargeInstallments) {
+                if (newCharge.getInstallment() != null && newCharge.getInstallment().getInstallmentNumber() != null) {
+                    newChargeMap.put(newCharge.getInstallment().getInstallmentNumber(), newCharge);
+                }
+            }
+
+            final Collection<LoanInstallmentCharge> chargesToRemoveFromLoanCharge = new HashSet<>();
+            final Collection<LoanInstallmentCharge> chargesToAddIntoLoanCharge = new HashSet<>();
+
+            for (final LoanInstallmentCharge oldCharge : oldLoanInstallmentCharges) {
+                final Integer oldInstallmentNumber = oldCharge.getInstallment().getInstallmentNumber();
+
+                if (newChargeMap.containsKey(oldInstallmentNumber)) {
+                    chargesToRemoveFromLoanCharge.add(oldCharge);
+                    oldCharge.getInstallment().getInstallmentCharges().remove(oldCharge);
+                    chargesToAddIntoLoanCharge.add(newChargeMap.get(oldInstallmentNumber));
+                    newChargeMap.remove(oldInstallmentNumber);
+                } else {
+                    chargesToRemoveFromLoanCharge.add(oldCharge);
+                    oldCharge.getInstallment().getInstallmentCharges().remove(oldCharge);
+                }
+            }
+
+            chargesToAddIntoLoanCharge.addAll(newChargeMap.values());
+
+            loanCharge.getLoanInstallmentCharge().removeAll(chargesToRemoveFromLoanCharge);
+            loanCharge.getLoanInstallmentCharge().addAll(chargesToAddIntoLoanCharge);
+        }
+
+        Money totalAmount = Money.zero(loanCharge.getLoan().getCurrency());
+        for (LoanInstallmentCharge charge : loanCharge.getLoanInstallmentCharge()) {
+            totalAmount = totalAmount.plus(charge.getAmount());
+        }
+        loanCharge.setAmount(totalAmount.getAmount());
+    }
+
    private BigDecimal calculateOverdueAmountPercentageAppliedTo(final Loan loan, final LoanCharge loanCharge,
            final int penaltyWaitPeriod) {
        LoanRepaymentScheduleInstallment installment = loanCharge.getOverdueInstallmentCharge().getInstallment();
@@ -674,7 +785,7 @@ public class LoanChargeService {
                case FLAT:
                    if (loanCharge.isInstalmentFee()) {
                        if (numberOfRepayments == null) {
-                            numberOfRepayments = loanCharge.getLoan().fetchNumberOfInstallmensAfterExceptions();
+                            numberOfRepayments = loanCharge.getLoan().fetchNumberOfInstallmentsAfterExceptions();
                        }
                        loanCharge.setAmount(amount.multiply(BigDecimal.valueOf(numberOfRepayments)));
                    } else {
@@ -701,6 +812,46 @@ public class LoanChargeService {
        }
    }

+    private void update(final LoanCharge loanCharge, final BigDecimal amount, final LocalDate dueDate, final BigDecimal loanPrincipal,
+            Integer numberOfRepayments, BigDecimal loanChargeAmount, final LocalDate transactionDate) {
+        if (dueDate != null) {
+            loanCharge.setDueDate(dueDate);
+        }
+
+        if (amount != null) {
+            switch (loanCharge.getChargeCalculation()) {
+                case INVALID:
+                break;
+                case FLAT:
+                    if (loanCharge.isInstalmentFee()) {
+                        if (numberOfRepayments == null) {
+                            numberOfRepayments = loanCharge.getLoan().fetchNumberOfInstallmentsAfterExceptions();
+                        }
+                        loanCharge.setAmount(amount.multiply(BigDecimal.valueOf(numberOfRepayments)));
+                    } else {
+                        loanCharge.setAmount(amount);
+                    }
+                break;
+                case PERCENT_OF_AMOUNT:
+                case PERCENT_OF_AMOUNT_AND_INTEREST:
+                case PERCENT_OF_INTEREST:
+                case PERCENT_OF_DISBURSEMENT_AMOUNT:
+                    loanCharge.setPercentage(amount);
+                    loanCharge.setAmountPercentageAppliedTo(loanPrincipal);
+                    if (loanChargeAmount.compareTo(BigDecimal.ZERO) == 0) {
+                        loanChargeAmount = loanCharge.percentageOf(loanCharge.getAmountPercentageAppliedTo());
+                    }
+                    loanCharge.setAmount(loanCharge.minimumAndMaximumCap(loanChargeAmount));
+                break;
+            }
+            loanCharge.setAmountOrPercentage(amount);
+            loanCharge.setAmountOutstanding(loanCharge.calculateOutstanding());
+            if (loanCharge.getLoan() != null && loanCharge.isInstalmentFee()) {
+                updateInstallmentCharges(loanCharge, transactionDate);
+            }
+        }
+    }
+
    private Money getTotalAllTrancheDisbursementAmount(final Loan loan) {
        Money amount = Money.zero(loan.getCurrency());
        if (loan.isMultiDisburmentLoan()) {
@@ -42,6 +42,8 @@ public final class LoanProductsApiResourceSwagger {

        @Schema(example = "1")
        public Long id;
+        @Schema(example = "60.0")
+        public BigDecimal amount;
    }

    @Schema(description = "LoanProductChargeToGLAccountMapper")
@@ -1421,7 +1423,7 @@ public final class LoanProductsApiResourceSwagger {
        @Schema(example = "false")
        public Boolean canDefineInstallmentAmount;
        @Schema(example = "[]")
-        public List<Integer> charges;
+        public List<LoanProductChargeData> charges;
        public Set<GetLoanProductsPrincipalVariationsForBorrowerCycle> productsPrincipalVariationsForBorrowerCycle;
        @Schema(example = "[]")
        public List<Integer> interestRateVariationsForBorrowerCycle;
@@ -76,6 +76,7 @@ import org.apache.fineract.portfolio.loanaccount.domain.LoanCharge;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargePaidBy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanCreditAllocationRule;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanInstallmentCharge;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanInterestRecalculationDetails;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanPaymentAllocationRule;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleInstallment;
@@ -97,6 +98,7 @@ import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanSchedul
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeValidator;
 import org.apache.fineract.portfolio.loanaccount.service.InterestRefundService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanBalanceService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanChargeService;
 import org.apache.fineract.portfolio.loanaccount.service.schedule.LoanScheduleComponent;
 import org.apache.fineract.portfolio.loanproduct.calc.EMICalculator;
 import org.apache.fineract.portfolio.loanproduct.calc.data.OutstandingDetails;
@@ -125,17 +127,20 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
    private final InterestRefundService interestRefundService;
    private final LoanScheduleComponent loanSchedule;
    private final LoanTransactionRepository loanTransactionRepository;
+    private final LoanChargeService loanChargeService;

    public AdvancedPaymentScheduleTransactionProcessor(final EMICalculator emiCalculator, final LoanRepositoryWrapper loanRepositoryWrapper,
            final InterestRefundService interestRefundService, final ExternalIdFactory externalIdFactory,
            final LoanScheduleComponent loanSchedule, final LoanTransactionRepository loanTransactionRepository,
-            final LoanChargeValidator loanChargeValidator, final LoanBalanceService loanBalanceService) {
+            final LoanChargeValidator loanChargeValidator, final LoanBalanceService loanBalanceService,
+            final LoanChargeService loanChargeService) {
        super(externalIdFactory, loanChargeValidator, loanBalanceService);
        this.emiCalculator = emiCalculator;
        this.loanRepositoryWrapper = loanRepositoryWrapper;
        this.interestRefundService = interestRefundService;
        this.loanTransactionRepository = loanTransactionRepository;
        this.loanSchedule = loanSchedule;
+        this.loanChargeService = loanChargeService;
    }

    @Override
@@ -372,6 +377,10 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
            createMissingAccrualTransactionDuringChargeOffIfNeeded(newInterest, loanTransaction, loanTransaction.getTransactionDate(),
                    transactionCtx);

+            if (!loanTransaction.getLoan().isInterestBearingAndInterestRecalculationEnabled()) {
+                recalculateInstallmentFeeCharges(loanTransaction);
+            }
+
            loanTransaction.resetDerivedComponents();
            // determine how much is outstanding total and breakdown for principal, interest and charges
            for (final LoanRepaymentScheduleInstallment currentInstallment : transactionCtx.getInstallments()) {
@@ -1215,11 +1224,37 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep

    private void handleDisbursement(LoanTransaction disbursementTransaction, TransactionCtx transactionCtx) {
        // TODO: Fix this and enhance EMICalculator to support reamortization and reaging
-        if (disbursementTransaction.getLoan().isInterestBearing()) {
+        final Loan loan = disbursementTransaction.getLoan();
+        if (loan.isInterestBearing()) {
            handleDisbursementWithEMICalculator(disbursementTransaction, transactionCtx);
        } else {
            handleDisbursementWithoutEMICalculator(disbursementTransaction, transactionCtx);
        }
+        if (!disbursementTransaction.getLoan().isInterestBearingAndInterestRecalculationEnabled()) {
+            recalculateInstallmentFeeCharges(disbursementTransaction);
+        }
+    }
+
+    private void recalculateInstallmentFeeCharges(final LoanTransaction loanTransaction) {
+        final Loan loan = loanTransaction.getLoan();
+        final List<LoanCharge> loanInstallmentFeeCharges = loan.getActiveCharges().stream()
+                .filter(c -> c.isInstalmentFee() && c.getSubmittedOnDate().isBefore(loanTransaction.getTransactionDate())).toList();
+        loanChargeService.recalculateParticularChargesAfterTransactionOccurs(loan, loanInstallmentFeeCharges,
+                loanTransaction.getTransactionDate());
+        if (!loanInstallmentFeeCharges.isEmpty()) {
+            final List<LoanRepaymentScheduleInstallment> installmentsToUpdate = loan.getRepaymentScheduleInstallments().stream()
+                    .filter(i -> i.isNotFullyPaidOff() && !i.isAdditional()).toList();
+            for (LoanRepaymentScheduleInstallment installment : installmentsToUpdate) {
+                if (installment.isDownPayment()) {
+                    continue;
+                }
+                final BigDecimal newFee = installment.getInstallmentCharges().stream().map(LoanInstallmentCharge::getAmount)
+                        .reduce(BigDecimal.ZERO, BigDecimal::add);
+                if (newFee.compareTo(BigDecimal.ZERO) != 0) {
+                    installment.setFeeChargesCharged(newFee);
+                }
+            }
+        }
    }

    private void handleDisbursementWithEMICalculator(LoanTransaction disbursementTransaction, TransactionCtx transactionCtx) {
@@ -1670,6 +1705,10 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
            createMissingAccrualTransactionDuringChargeOffIfNeeded(newInterest, loanTransaction, loanTransaction.getTransactionDate(),
                    transactionCtx);

+            if (!loanTransaction.getLoan().isInterestBearingAndInterestRecalculationEnabled()) {
+                recalculateInstallmentFeeCharges(loanTransaction);
+            }
+
            loanTransaction.resetDerivedComponents();
            // determine how much is outstanding total and breakdown for principal, interest and charges
            for (final LoanRepaymentScheduleInstallment currentInstallment : transactionCtx.getInstallments()) {
@@ -1765,8 +1804,8 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep

            if (futureFee.compareTo(BigDecimal.ZERO) > 0 || futurePenalty.compareTo(BigDecimal.ZERO) > 0) {
                final Optional<LocalDate> latestDueDate = loan.getCharges().stream()
-                        .filter(loanCharge -> loanCharge.isActive() && loanCharge.isNotFullyPaid()).map(LoanCharge::getDueDate)
-                        .max(LocalDate::compareTo);
+                        .filter(loanCharge -> loanCharge.isActive() && loanCharge.isNotFullyPaid() && loanCharge.getDueDate() != null)
+                        .map(LoanCharge::getDueDate).max(LocalDate::compareTo);

                if (latestDueDate.isPresent()) {
                    final LoanRepaymentScheduleInstallment lastInstallment = installmentsUpToTransactionDate.getLast();
@@ -2526,11 +2565,12 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
    }

    @NotNull
-    private Set<LoanCharge> getLoanChargesOfInstallment(Set<LoanCharge> charges, LoanRepaymentScheduleInstallment installment,
-            int firstInstallmentNumber) {
-        boolean isFirstInstallment = installment.getInstallmentNumber().equals(firstInstallmentNumber);
+    private Set<LoanCharge> getLoanChargesOfInstallment(final Set<LoanCharge> charges, final LoanRepaymentScheduleInstallment installment,
+            final int firstInstallmentNumber) {
+        final boolean isFirstInstallment = installment.getInstallmentNumber().equals(firstInstallmentNumber);
        return charges.stream()
-                .filter(loanCharge -> loanCharge.isDueInPeriod(installment.getFromDate(), installment.getDueDate(), isFirstInstallment))
+                .filter(loanCharge -> (loanCharge.isInstalmentFee() && loanCharge.hasInstallmentFor(installment))
+                        || loanCharge.isDueInPeriod(installment.getFromDate(), installment.getDueDate(), isFirstInstallment))
                .collect(Collectors.toSet());
    }

@@ -66,12 +66,17 @@ public class ChangeOperation implements Comparable<ChangeOperation> {
        return loanCharge.isPresent();
    }

+    public boolean isInstallmentFee() {
+        return loanCharge.map(LoanCharge::isInstalmentFee).orElse(false);
+    }
+
    private boolean isAccrualActivity() {
        return isTransaction() && loanTransaction.get().isAccrualActivity();
    }

    private boolean isBackdatedCharge() {
-        return isCharge() && DateUtils.isBefore(loanCharge.get().getDueDate(), loanCharge.get().getSubmittedOnDate());
+        return isCharge() && loanCharge.isPresent() && loanCharge.get().getDueDate() != null
+                && DateUtils.isBefore(loanCharge.get().getDueDate(), loanCharge.get().getSubmittedOnDate());
    }

    private LocalDate getEffectiveDate() {
@@ -80,6 +85,8 @@ public class ChangeOperation implements Comparable<ChangeOperation> {
        } else if (loanCharge.isPresent()) {
            if (isBackdatedCharge()) {
                return loanCharge.get().getDueDate();
+            } else if (isInstallmentFee()) {
+                return loanCharge.get().getLoan().isDisbursed() ? loanCharge.get().getSubmittedOnDate() : loanCharge.get().getDueDate();
            } else {
                return loanCharge.get().getSubmittedOnDate();
            }
@@ -119,6 +126,17 @@ public class ChangeOperation implements Comparable<ChangeOperation> {
    public int compareTo(@NonNull ChangeOperation o) {
        int datePortion = DateUtils.compareWithNullsLast(this.getEffectiveDate(), o.getEffectiveDate());
        if (datePortion == 0) {
+            boolean thisIsDisb = this.isTransaction() && this.getLoanTransaction().isPresent()
+                    && this.getLoanTransaction().get().isDisbursement();
+            boolean otherIsDisb = o.isTransaction() && o.getLoanTransaction().isPresent() && o.getLoanTransaction().get().isDisbursement();
+
+            if (thisIsDisb && o.isCharge() && o.isInstallmentFee()) {
+                return -1;
+            }
+            if (this.isCharge() && this.isInstallmentFee() && otherIsDisb) {
+                return 1;
+            }
+
            final boolean isAccrual = isAccrualActivity();
            if (isAccrual != o.isAccrualActivity()) {
                return isAccrual ? 1 : -1;
@@ -75,6 +75,7 @@ import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanSchedul
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeValidator;
 import org.apache.fineract.portfolio.loanaccount.service.InterestRefundService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanBalanceService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanChargeService;
 import org.apache.fineract.portfolio.loanaccount.service.schedule.LoanScheduleComponent;
 import org.apache.fineract.portfolio.loanproduct.calc.EMICalculator;
 import org.apache.fineract.portfolio.loanproduct.calc.data.ProgressiveLoanInterestScheduleModel;
@@ -121,7 +122,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
        underTest = new AdvancedPaymentScheduleTransactionProcessor(emiCalculator, Mockito.mock(LoanRepositoryWrapper.class),
                Mockito.mock(InterestRefundService.class), Mockito.mock(ExternalIdFactory.class), Mockito.mock(LoanScheduleComponent.class),
                Mockito.mock(LoanTransactionRepository.class), Mockito.mock(LoanChargeValidator.class),
-                Mockito.mock(LoanBalanceService.class));
+                Mockito.mock(LoanBalanceService.class), Mockito.mock(LoanChargeService.class));

        ThreadLocalContextUtil.setTenant(new FineractPlatformTenant(1L, "default", "Default", "Asia/Kolkata", null));
        ThreadLocalContextUtil.setActionContext(ActionContext.DEFAULT);
@@ -202,18 +202,6 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
        final Long chargeDefinitionId = command.longValueOfParameterNamed("chargeId");
        final Charge chargeDefinition = this.chargeRepository.findOneWithNotFoundDetection(chargeDefinitionId);

-        /*
-         * TODO: remove this check once handling for Installment fee charges is implemented for Advanced Payment
-         * strategy
-         */
-        if (ChargeTimeType.fromInt(chargeDefinition.getChargeTimeType()).isInstalmentFee()
-                && AdvancedPaymentScheduleTransactionProcessor.ADVANCED_PAYMENT_ALLOCATION_STRATEGY
-                        .equals(loan.transactionProcessingStrategy())) {
-            final String errorMessageInstallmentChargeNotSupported = "Charge with identifier " + chargeDefinition.getId()
-                    + " cannot be applied: Installment fee charges are not supported for Advanced payment allocation strategy";
-            throw new ChargeCannotBeAppliedToException("loan", errorMessageInstallmentChargeNotSupported, chargeDefinition.getId());
-        }
-
        if (loan.isDisbursed() && chargeDefinition.isDisbursementCharge()) {
            // validates whether any pending disbursements are available to
            // apply this charge
@@ -1079,11 +1067,6 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
                        chargeDefinition.getName());
            }
        } else if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
-            if (loanCharge.isInstalmentFee() && loan.getStatus().isActive()) {
-                final String defaultUserMessage = "installment charge addition not allowed after disbursement";
-                throw new LoanChargeCannotBeAddedException("loanCharge", "installment.charge", defaultUserMessage, null,
-                        chargeDefinition.getName());
-            }
            final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
            final Set<LoanCharge> loanCharges = new HashSet<>(1);
            loanCharges.add(loanCharge);
@@ -36,6 +36,7 @@ import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.imp
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.RBILoanRepaymentScheduleTransactionProcessor;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeValidator;
 import org.apache.fineract.portfolio.loanaccount.service.LoanBalanceService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanChargeService;
 import org.apache.fineract.portfolio.loanaccount.service.ProgressiveLoanInterestRefundServiceImpl;
 import org.apache.fineract.portfolio.loanaccount.service.schedule.LoanScheduleComponent;
 import org.apache.fineract.portfolio.loanproduct.calc.EMICalculator;
@@ -139,8 +140,8 @@ public class LoanAccountAutoStarter {
            final @Lazy ProgressiveLoanInterestRefundServiceImpl progressiveLoanInterestRefundService,
            final ExternalIdFactory externalIdFactory, final LoanScheduleComponent loanSchedule,
            final LoanTransactionRepository loanTransactionRepository, final LoanChargeValidator loanChargeValidator,
-            final LoanBalanceService loanBalanceService) {
+            final LoanBalanceService loanBalanceService, @Lazy final LoanChargeService loanChargeService) {
        return new AdvancedPaymentScheduleTransactionProcessor(emiCalculator, loanRepositoryWrapper, progressiveLoanInterestRefundService,
-                externalIdFactory, loanSchedule, loanTransactionRepository, loanChargeValidator, loanBalanceService);
+                externalIdFactory, loanSchedule, loanTransactionRepository, loanChargeValidator, loanBalanceService, loanChargeService);
    }
 }
@@ -199,7 +199,7 @@ class LoanChargeWritePlatformServiceImplTest {
        when(loan.getDisbursementDate()).thenReturn(LocalDate.now(ZoneId.systemDefault()));
        when(loan.getRepaymentScheduleInstallments()).thenReturn(new ArrayList<>());
        when(loanChargeService.calculateAmountPercentageAppliedTo(any(Loan.class), any(LoanCharge.class))).thenReturn(BigDecimal.TEN);
-        when(loan.fetchNumberOfInstallmensAfterExceptions()).thenReturn(5);
+        when(loan.fetchNumberOfInstallmentsAfterExceptions()).thenReturn(5);
        when(loan.updateSummaryWithTotalFeeChargesDueAtDisbursement(any(BigDecimal.class))).thenReturn(null);
        when(loan.deriveSumTotalOfChargesDueAtDisbursement()).thenReturn(BigDecimal.ZERO);
        when(loanCharge.getDueLocalDate()).thenReturn(LocalDate.now(ZoneId.systemDefault()));
@@ -46,6 +46,7 @@ import org.apache.fineract.integrationtests.common.loans.LoanProductTestBuilder;
 import org.apache.fineract.integrationtests.common.loans.LoanTransactionHelper;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.junit.jupiter.api.BeforeAll;
+import org.junit.jupiter.api.Disabled;
 import org.junit.jupiter.api.Test;

 public class LoanChargeTypeInstallmentFeeErrorHandlingWithAdvancedPaymentAllocationTest extends BaseLoanIntegrationTest {
@@ -67,9 +68,7 @@ public class LoanChargeTypeInstallmentFeeErrorHandlingWithAdvancedPaymentAllocat
        ACCOUNT_HELPER = new AccountHelper(REQUEST_SPEC, RESPONSE_SPEC);
    }

-    /*
-     * TODO: To be disabled when Installment Fee Charges are handled for Advanced Payment Allocation
-     */
+    @Disabled
    @Test
    public void addingLoanChargeTypeInstallmentFeeForAdvancedPaymentAllocationGivesErrorTest() {
        try {